The National Samsung Electronics Union (NSEU) has taken a bold step in its fight for better pay and benefits for its members by calling for an indefinite strike, affecting approximately 30,000 workers at South Korean technology giant Samsung Electronics.
The decision to escalate the strike came after the union’s three-day general strike did not yield any progress in negotiations with management. The NSEU, representing nearly a quarter of Samsung Electronics’ workforce in South Korea, claimed that their actions had disrupted production, although Samsung has denied this.
Despite the ongoing labor dispute, Samsung Electronics has assured that there will be no disruptions in production lines and that the company remains committed to engaging in negotiations with the union. However, the NSEU has declared a second general strike starting from July 10th, with no specified end date.
This latest development follows the first walkout staged by the union last month, marking a significant shift in Samsung’s labor relations. Historically, Samsung Group, the conglomerate to which Samsung Electronics belongs, did not allow unions to represent its workers until 2020.
The news of the strike had a minimal impact on Samsung Electronics’ shares, which were trading flat to slightly lower on the Korea Stock Exchange. Despite the labor unrest, the company recently announced a significant jump in profits for the second quarter of 2024, driven by the booming demand for advanced chips in the era of artificial intelligence (AI) technology.
As the strike continues to unfold, all eyes will be on Samsung Electronics and the NSEU to see how this labor dispute will impact one of the world’s largest technology companies and its workforce.
